〈Business Post, November 4, 2017〉A consortium under a state-owned enterprise bought 75 per cent of The Center's ownership from CK Asset Holdings at $40.2 billion - the largest single property transaction in Hong Kong. It shows that Hong Kong as an international trade and financial centre still draws overseas and mainland investors. Central commercial buildings in short supply are worth a lot of money. Hong Kong must develop more central business districts to meet the demand.

According to government statistics, there are over 8,000 mainland and overseas companies in Hong Kong, an increase of three per cent over last year with 1,400 or so firms making the SAR their regional headquarters. Many of them are Japanese companies. Rents rose nearly five per cent this August compared to last year and six per cent for Grade A commercial buildings in short supply.

This reflects Hong Kong's booming commerce. With the increase in enterprises, more office spaces are needed. Hong Kong's recent economic growth is stronger than the past two years. Financial Secretary Paul Chan Mo-po earlier raised this year's economic growth forecast to at least 3.5 per cent, much better than last year and higher than the average since the handover.

With mainland's medium to high economic growth, business opportunities brought by the "One Belt, One Road" initiative and Guangdong-Hong Kong-Macao Big Bay Area and Hong Kong's traditional geographical edge as well as top services and policies in telecommunications, law, etc., there will be more companies coming to Hong Kong. However high rents and prices are, so long as there are profits, companies will rent or buy office spaces for self-use or investment. The buyer of The Center is both a user and investor. Fifty-five per cent of the company is owned by the China Energy Reserve and Chemicals Group while 45 per cent by other investors.

〈Asian Post, November 3, 2017〉The property developer, which builds homes in 40 cities across the mainland, said it had invested HK$500 million to HK$600 million this year in two residential and commercial projects each.

The residential projects will be turned into co-living spaces aimed at the city's university students and young professionals looking for affordable rents, a modern environment and more shared spaces.

"We are just starting to test the market," said Kenny Chan, company secretary and executive director at Future Land. Hong Kong's sky-high rents have created an opportunity for co-living property projects - small rooms built around communal living and cooking areas - to pose as a viable and affordable option for millennials.

Chan said the company was bullish on the city's housing rental market, especially small-scale projects, and expected its co- living projects to yield up to 9 per cent a year.The first c -living project, near Hong Kong Polytechnic University in Tsim Sha Tsui East, Kowloon, is set to be completed by the first quarter of next year.

The 20-storey building will consist of more than 100 flats, open spaces and retail shops on the lower floors, with Future Land owning 80 per cent of the project.

The other co-living project is in Sai Ying Pun in Western on Hong Kong Island.
Future Land is only an equity investor in its projects.

Future Land Resources Capital Group - a Hong Kong investment firm acquired by the developer earlier this year, ill hold and develop the projects, Chan said.

〈The Standard, November 2, 2017〉Shopping center developers and retailers should focus on the needs and expectations of the millennial generation, who increasingly favor e-commerce, says Maureen Fung Sau- yim, founding chairwoman and president of the Institute of Shopping Centre Management.

Fung, who is also executive director of Sun Hung Kai Properties (China), said in an interview after a recent Asian shopping conference that retailers and mall owners should operate both physical shops and online stores at the same time to boost sales.

The institute held the 14th Council of Asian Shopping Centres Conference in Hong Kong last month to review the evolution and future of the shopping center industry. Attended by 300 industry insiders and retailers, the event featured speakers from the property development sector, operation management specialists, and leaders of top-tier brands.

Institute chairman Baldwin Ko Po- fung said most of the Asian and international brands have created a better customer experience by providing a wide range of value-added services, recognizing the growing trend of online shopping.

For example, Muji from Japan and agnes b, from France, have opened themed cafes to enable their customers to enjoy their unique service in shopping centers.

Under globalization, many international brands have set up their own official websites to promote business, Ko said. "It reflects the idea that the industry can expand its retail network and business opportunities by moving to an online-to-offline strategy," he added.

〈Asian Post, November 1, 2017〉Hong Kong slipped one place to fifth in the World Bank's ranking of the easiest places to do business yesterday, prompting a government spokesman to say officials were working on legislation to improve the score.

For the second year, New Zealand topped the international financial body's Doing Business Report, followed by Singapore, Denmark and South Korea. China remained unchanged from last year at 78th, while Taiwan slipped from 11th to 15th.

The report measures the ease of doing business in 190 economies using 11 indicators on business regulation, such as how easy it is to start a business, protect minority investors and secure credit.

Hong Kong fared well in starting a business (third), paying taxes (third), access to electricity (fourth) and construction permits (fifth). It performed poorly in trading across borders, resolving insolvency and registering property, but won credit for improving "the quality of its land administration system by enhancing its reliability and establishing a complaints mechanism".

Hong Kong's slip to fifth was mainly because of a lower score in "resolving insolvency" - which studies the time, cost and outcome of proceedings for businesses that cannot pay debts - for the corporate sector, a government spokesman said.

He said the government would review the insolvency policy from time to time for more effective processing of winding-up cases and better protection of creditors.

"The government is also preparing a bill for the introduction of a statutory corporate rescue procedure, which will help strengthen the relevant regime."

〈China Business, November 1, 2017〉Hongkong Land Holdings, the largest commercial landlord in Central, is making its first retail foray in Beijing, a market that drastically differs from its home turf.

The firm will start trial op eration of WF Central, a 150,000 square metre retail, dining, hospitality and lifestyle hub in Wangfujing, at the end of the month.

The US$1.1 billion investment is the company's first large-scale shopping centre endeavour in the Beijing.

Hongkong Land also operates shopping centres in Shanghai, Chengdu and Chongqing. The company said it envisaged the complex as a Beijing landmark of quality living by integrating luxury, fashion, food, lifestyle, art and culture, and a 74-room Mandarin Oriental hotel. The retail space is about 50,000 square metres.

Hongkong Land has spent a lot of time and energy on this project. Although it acquired the site in 2011, talks to buy the property took more than 10 years.

"WF Central is poised to meet the needs of [the country's] next generation of consumers and stands as a testament to Hongkong Land's ability to transform communities with diverse, sophisticated and attractive developments," executive director Raymond Chou said at a press conference. "This is not a 10-year, 15-year investment. It is a generational investment."

With the soft opening, Hongkong Land will introduce a mix of more than 100 tenants including luxury brands, such as Chopard, Jimmy Choo and Moschino and fast-fashion brands like Victoria's Secret and Pandora. Asked about the competitive landscape and the impact of e-commerce, Chou said he was "very confident" about the Beijing market as the company would bring global best practices and had strong ties with retail brands.